The final week of May ended with US lawmakers voting to lift the country’s debt ceiling, markets assigning a one-in-three chance that the Federal Reserve will raise interest rates in mid-June and the price of oil testing 18-month lows. Against this backdrop, flows into all EPFR-tracked Equity Funds hit a 17-week high on the back of record-setting inflows to Technology Sector Funds and China Equity Funds absorbed nearly $5 billion.
Debt ceiling no obstacle for US Bond Funds
Amidst increasingly stark warnings of economic chaos if the current standoff over the US federal debt ceiling is not resolved, EPFR-tracked US Bond Funds pulled in another $8.1 billion going into the final week of May as they recorded their 21st consecutive inflow.
Market Insights: Retail flows
During this session, Quantitative Analyst Azalea Micottis showed how EPFR’s fund flows data can work with retail flows to uncover key insights for investors.
The best defense is a good Chinese economy
Worries about the impact a two-pronged credit squeeze, driven by quantitative tightening and the pressure on regional bank loan books, will have on the US economy kept investors in a defensive frame of mind during the week ending May 17.
Weekly fund flows highlights – 15th May 2023
Following interest rate increases from both the US Federal Reserve and the European Central Bank, disparity has taken over investors. Our Head of Global Customer Solutions, Steve Muzzlewhite, uses our fund flows and asset allocations data to analyze the latest sector rotation and portfolio management strategies, and how these are impacting global markets.
Weekly fund flows highlights – 8th May 2023
How did markets react to the interest rate hikes from both the US Federal Reserve and the European Central Bank? In a week where nonfarm payrolls in America reported a job increase way above the initial expectations, we use EPFR’s Fund Flows and Allocations data to deep dive into the latest investor sentiment trends.
Monetary squeeze tightens another two notches
Investors were expecting quarter-point interest rate hikes from the US Federal Reserve and European Central Bank (ECB) in early May. They got them, along with the collapse of another American regional bank, a warning from Treasury Secretary Janet Yellen that the US may not be able to pay its bills in June if the debt ceiling standoff persists and more violent protests against pension reform in France.
Weekly fund flows highlights – 1st May 2023
Market news this week are dominated by rumors of another possible interest rate rise from both the US Federal Reserve and the European Central Bank, as well as the latest US job market update. How is money moving in the meantime? EPFR’s Global Head of Customer Solutions, Steve Muzzlewhite, takes a look at our latest fund flow data.
Off the wires: Bitcoin is one year away from a major technical event. History suggests the start of another bull run
Bitcoin’s next “halving” is expected to take place in 2024. These events take place when Bitcoin miners have added 210,000 “blocks” to the blockchain leger and are marked by a halving of the Bitcoins that miners get for adding each block. Given the implications for future supplies of Bitcoin, these ‘halvings’ usually push Bitcoin’s price significantly higher, both in the run up to the event and for several months afterwards. This time around seems – so far – to be conforming to the pattern: Bitcoin’s price has risen steadily in recent weeks.
Off the wires: Money market funds swell by more than $286bn amid deposit flight
The collapse of several US regional banks and the UBS-Credit Suisse merger in March spurred investors to look for alternative homes for their money. For many the answer was Money Market Funds. Utilizing EPFR Fund Flows and Allocations data, we analyze which mandates and regions have benefited the most in recent weeks.